A licensee in BC discovers that their client may be using a real estate purchase to launder proceeds of crime. Under both RESA and FINTRAC obligations, what must the licensee do?
Correct Answer
D) File a Suspicious Transaction Report with FINTRAC, avoid tipping off the client, and consult the managing broker on next steps
When a licensee has reasonable grounds to suspect money laundering, they must file a Suspicious Transaction Report (STR) with FINTRAC as soon as practicable. The licensee must not tip off the client that a report has been filed (tipping off is a criminal offence). They should also consult with their managing broker about compliance obligations and whether to continue the engagement. Under RESA, licensees have professional obligations that may require withdrawal from the transaction.
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A BC licensee receives a $50,000 deposit cheque, payable to their brokerage, from a buyer. Under the Real Estate Services Act, when must the money reach the brokerage trust account?
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